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Q1 2009 Agm Presentation Final
1. With its emphasis on quality ,
an exceptional record of creating
shareholder value, and one of
the most robust growth profiles
in the industry, Agnico-Eagle
Mines Limited has emerged
as the gold stock of choice.
AGNICO-EAGLE MINES LIMITED
SHAREHOLDER MEETING
April 30, 2009
Member of the World Gold Council www.gold.com Goldex site, Canada
2. Forward Looking Statements
The information in this document has been prepared as at April 30, 2009. Certain statements contained in this document
constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of
1995 and forward looking information under the provisions of Canadian provincial securities laws. When used in this
document, the words “anticipate”, “expect”, “estimate”, “forecast”, “will”, “planned”, and similar expressions are intended to
identify forward-looking statements or information.
Such statements include without limitation: statements regarding timing and amounts of capital expenditures and other
assumptions; estimates of future reserves, resources, mineral production and sales; estimates of mine life; estimates of future
mining costs, cash costs, minesite costs and other expenses; estimates of future capital expenditures and other cash needs,
and expectations as to the funding thereof; statements and information as to the projected development of certain ore
deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing
of such exploration, development and production or decisions with respect to such exploration, development and production;
estimates of reserves and resources, and statements and information regarding anticipated future exploration; the anticipated
timing of events with respect to the Company's minesites and statements and information regarding the sufficiency of the
Company's cash resources. Such statements and information reflect the Company's views as at the date of this document and
are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and
information. Many factors, known and unknown could cause the actual results to be materially different from those expressed
or implied by such forward looking statements and information. Such risks include, but are not limited to: the volatility of prices
of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates;
uncertainty of future production, capital expenditures, and other costs; currency fluctuations; financing of additional capital
requirements; cost of exploration and development programs; mining risks; risks associated with foreign operations;
governmental and environmental regulation; the volatility of the Company's stock price; and risks associated with the
Company's byproduct metal derivative strategies. For a more detailed discussion of such risks and other factors that may
affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this document,
see Company's Annual Report on Form 20-F for the year ended December 31, 2008, as well as the Company's other filings
with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission. The Company does not
intend, and does not assume any obligation, to update these forward-looking statements and information. Marc Legault, a
Qualified Person and the Company’s Vice-President, Project Development, reviewed the technical information disclosed
herein. For a detailed breakdown of the Company’s reserve and resource position see the February 18, 2009 press release on
the Company’s website. This press release also lists the Qualified Persons for each project.
2
3. Notes To Investors
Note to Investors Regarding the Use of Non-GAAP Financial Measures
This document presents estimates of future quot;total cash cost per ouncequot; and quot;minesite cost per tonnequot; that are not recognized
measures under United States generally accepted accounting principles (quot;US GAAPquot;). This data may not be comparable to
data presented by other gold producers. These future estimates are based upon the total cash costs per ounce and minesite
costs per tonne that the Company expects to incur to mine gold at the applicable projects and do not include production costs
attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and
mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable
GAAP measure. A reconciliation of the Company's total cash cost per ounce and minesite cost per tonne to the most
comparable financial measures calculated and presented in accordance with US GAAP for the Company's historical results of
operations is set forth in the notes to the financial statements included in the Company's Annual Information Form and Annual
Report on Form 20-F, for the year ended December 31, 2008, as well as the Company's other filings with the Canadian
Securities Administrators and the SEC.
3
4. Gold Bull Market Continues
“It’s pure, It’s simple. As an asset class, gold is as pure and simple as they come. It is not a
relic of the past, or irrelevant as some might suggest. Gold has remained a storehouse of
value and a symbol of wealth throughout the ages. In fact, gold has actually taken on more
importance – as real money and as a portfolio diversifier in today’s world of a perpetually
expanding paper money supply”
Excerpt from 1999 Agnico-Eagle Annual Report
4
5. Consistent, Focused Business Approach
“Throughout Agnico-Eagle’s long history we have worked hard at keeping our story
uncomplicated and our business strong. Our main objective is to find more gold and produce it
in increasing quantities at the lowest possible cost, to create more value and build a stronger
company.
Our goal is not to become a larger gold producer by adding marginal assets. Our goal is to
create the predominant midsized gold company, one with low production costs, growing gold
reserves, a strong retail investor following and a brand name as the gold stock of choice in a
rising gold market”
Excerpt from 1999 Agnico-Eagle Annual Report
5
6. Corporate Strategy and Q1 2009 Highlights
Maintaining focus on per share value creation
■ Increased gold production
■ Record quarterly gold production in Q1 of 91,812 oz
■ 2009 gold production to double versus 2008.
Double again in 2010
■ Grow gold reserves
■ Record reserves of 18.1 million ounces
■ Several deposits likely to exceed 5 million ounces
■ Acquire small, think big
■ Since being acquired, gold reserves and resources
up 89%* in Finland, Mexico and Nunavut
■ Be a low-cost leader
■ Lowest quartile of total cash cost per ounce
at $312 in Q1 2009
■ Maintain a solid financial profile
■ Fully funded for 2009 capex
* See attached reserve and resource tables
6
7. Operating Results
Low total cash costs per ounce
Q1 Q1 2009 Full Year Total Cash Costs
All $ amounts are in US$,
($/oz)
2009 2008 Estimate 2008
unless otherwise indicated
$340
est.
550,000 to
Gold 91,812 50,892 276,762* $269
575,000
(ounces)
$188
$155 $182 $162
Silver $56 $43
1,029 1,026 4,600 4,079
(ounces in thousands)
Zinc 13,291 19,467 63,000 65,755
(tonnes)
Copper -$365
1,682 1,453 6,800 6,922
(tonnes)
Total cash
$312 $(399) $340** $162
costs ($/oz) -$690
00 01 02 03 04 05 06 07 08 09E
* Includes 13,207 ounces of non commercial production from Goldex and Kittila
** Assumptions for 2009 total cash costs include Ag $11/oz, Zn $1,300/t, Cu $4,000/t, C$/US$ of
1.22.and US$/Euro of 1.30
7
8. Financial Results
Continued strong cash flows
Q1 Q1 Full Year
All amounts are in US$
2009 2008 2008
Revenues from
105.8 119.1 368.9
mining operations
(millions)
Earnings 54.3 28.9 73.2
(millions)
Earnings per share 0.35 0.20 0.50
(fully diluted)
Cash provided by
48.8 54.6 121.2
operating activities
(millions)
8
9. Strong Financial Position
March 31 Dec. 31
All amounts are in US$,
unless otherwise indicated 2009 2008
Cash and cash equivalents $208.4 $99.4
(millions)
Long term debt $415.0 $200.0
(millions)
Available credit facilities $129.6 $345.0
(millions)
Common shares outstanding 155.7 154.8
(millions)
Common shares, fully diluted 170.6 168.1
(millions)
9
11. Gold Reserves Per Share Among Highest In Industry
■ Shares outstanding increased only 3.1 times since 1998. Gold reserves up 13.9 times
■ Targeting additional reserve conversion at Kittila, Pinos Altos, Goldex and Meadowbank
■ Uniquely positioned with potential for several 5 million ounce gold deposits
20-21
GOLD RESERVES
18.1
(Millions of Ounces)
16.7
Meadowbank
12.5
10.4
Pinos Altos
7.9 7.9
Kittila
Lapa
4.0
3.3 3.3 Goldex
3.0
1.3
LaRonde
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2010
EST.
11
12. AEM Provides Increasing Leverage To Gold
■ AEM ranks among the Ounces of Production per Thousand Shares
highest in ounces of
8
production per share
■ Combined with some of the 7
lowest cash costs in the
6
industry, this also translates
into strong cash flow per
5
share performance
4
3
2
1
0
2007A 2008A 2009E 2010E
12
13. Industry Leading1 Gold Production Growth Estimates
Payable Gold Production Total Cash Costs
(ounces) ($/oz)*
Total Cash Costs
1,800,000 350
(weighted average)
1,600,000
300
1,400,000
250
1,200,000 Meadowbank
200
1,000,000
Pinos Altos
800,000
150
Kittila
600,000
Lapa
100
Goldex
400,000
50
LaRonde
200,000
0 0
2008A 2009E 2010E 2011E 2012E 2013-2018
Avg.
1 For an intermediate or senior gold producer
* Total cash costs per ounce for all years were calculated using the following metal prices and exchange rates (royalties included where applicable): $10.00/oz Ag; $1,200/t Zn;
$3,700/t Cu; C$/US$ of 1.22; US$/Euro of 1.28
13
16. Operations At A Glance
Three mines now operating. Three new gold mines nearing completion
■ Located in mining-friendly regions of low political risk
■ 100% owned, with low total acquisition costs
■ Each project has long-term mining camp potential
Fraser Institute’s Fraser Institute’s Fraser Institute’s
1 1 14
ranking ranking ranking
LaRonde Goldex Kittila
QUEBEC, CANADA QUEBEC, CANADA KITTILA, FINLAND
Fraser Institute’s Fraser Institute’s Fraser Institute’s
1 28 44
ranking ranking ranking
Lapa Pinos Altos Meadowbank
QUEBEC, CANADA CHIHUAHUA, MEXICO NUNAVUT, CANADA
Fraser Institute`s 2008/2009 ranking of 71 mining jurisdictions 16
17. LaRonde – Canada
Long Life Gold Reserves – Good cost performance continues
■ Operations:
■ Produced 51,339 ounces of gold in Q1 2009, with a total cash cost of $294/oz
■ Gold reserves of 5.0 million ounces from 35.8 million tonnes grading 4.3 g/t
■ Estimated average annual gold production of 320,000 ounces through 2022
■ Project:
■ Shaft sinking for Extension at 2,680 metres of 2,880 metres final depth
■ Start of production from Extension expected in 2011. On time, on budget
■ 2009 Exploration:
■ Focus on resource conversion, additional potential at depth
17
18. Goldex – Canada
Steady Production – Achieving operating targets
■ Operations:
■ Produced 35,959 ounces of gold in Q1 2009, with a total cash cost of $338/oz
■ Gold reserves of 1.6 million ounces from 23.8 million tonnes grading 2.1 g/t
■ Estimated average annual gold production of 160,000 ounces through 2017
■ Project:
■ Examining options to increase production rate from 6900 tpd to at least 8000 tpd.
Results expected Q2 2009
■ 2009 Exploration:
■ Exploration focus on resource conversion, mineralization to west
18
19. Kittila – Finland
Longer mill commissioning period required
■ Operations:
■ Produced 4,514 ounces of gold in Q1 2009 - non-commercial production
■ Gold reserves of 3.2 million ounces from 21.4 million tonnes grading 4.7 g/t
■ Estimated average annual gold production of 150,000 ounces through 2023
■ Project:
■ Examining options to significantly increase production rate of growing deposit.
Results expected Q4 2009
■ 2009 Exploration:
■ Focus on resource conversion, expansion below Suuri and Roura, and along strike
■ $16 million expected to be spent on exploration – nine drills operating
19
20. Kittila – Finland
Plant Commissioning Phase Extended
■ Mechanical commissioning completed
■ All circuits operating at steady state as designed
■ Gold flotation recovery nearing design
parameters
■ Two metallurgical issues recently identified
■ Gold chloride compound forming in autoclave
■ Activation of organic material in autoclave
■ These issues not uncommon in gold POX
circuits
■ Variable process conditions being tested
■ Residence time / oxygen levels
■ Acid levels / oxidation conditions
■ Pre-flotation of organic carbon
■ Following metallurgical remediation,
design mill recoveries higher than
83% expected over life of mine
20
21. Lapa – Canada
Produced First Gold On Schedule
■ Project:
■ Gold reserves of 1.1 million ounces from
3.8 million tonnes grading 8.8 g/t
■ Estimated average annual gold production
of 115,000 ounces through 2015
■ First three mining blocks have been
extracted at higher than expected grade
■ Ore stockpile of approximately 30,000
tonnes grading 11.0 g/t
■ Plant commissioned. First gold produced
in April
■ 2009 Exploration:
■ Focus on resource conversion, further
exploration upside at depth and to the
East
21
22. Pinos Altos – Mexico
On Schedule - Production expected in third quarter 2009
■ Project:
■ Gold reserves of 3.6 million ounces of gold, 100 million ounces of silver from 41.8
million tonnes grading 2.7 g/t gold and 74.6 g/t silver
■ Estimated average annual gold production of 175,000 ounces and 2.6 million ounces of
silver through 2022
■ Initial production expected on time, on budget, in Q3, 2009
■ Feasibility study completed on stand-alone operation at Creston Mascota
■ 2009 Exploration:
■ Focus on resource conversion, expansion of Pinos Altos zones, Reyna de Plata,
Creston Mascota
■ $11 million exploration program. Drilling from underground decline underway
22
23. Meadowbank – Canada
Production on Schedule for Q1 2010
■ Project:
■ Gold reserves of 3.6 million oz from 32.8 million tonnes grading 3.5 g/t
■ Estimated average annual gold production expected at 350,000 oz/yr through 2019
■ Start-up expected Q1, 2010
■ Project on schedule, but higher construction costs
■ Scoping study underway on potential of expansion. Could increase production rate
from 8,500 tpd to 10,000 tpd. Study results expected Q3 2009
■ 2009 Exploration:
■ Focus on resource conversion and expansion of Vault, Goose South and Portage
■ $11 million exploration program in progress. Seven drills operating
23
24. Upcoming News
2009 Internal Expansion Studies
Scoping study on Goldex
expansion and feasibility study
Q2 on Pinos Altos expansion at
Creston Mascota
Scoping study
Q3 on Meadowbank
expansion
Scoping study on
large scale
Q4 expansion at
Kittila
24
25. Investment Highlights
Share price up approximately 300% from 2003 to 2008
■ Long operating history and strong Growth
Quality
management team
■ Gold production expected to double to
550,000 ounces to 575,000 ounces in
2009. To double again to 1.2 million
ounces in 2010 LaRonde Lapa
QUEBEC, CANADA QUEBEC, CANADA
■ Existing projects provide potential to
increase gold reserves to 20-21 million
ounces by year end 2010
■ Potential for several five million ounce Goldex Pinos Altos
gold deposits is driving a growing QUEBEC, CANADA CHIHUAHUA, MEXICO
production profile post-2010
Kittila Meadowbank
KITTILA, FINLAND NUNAVUT, CANADA
25
26. Corporate Social Responsibility
■ Core Values
■ Operate safely
■ Protect the environment
■ Treat people and communities well
■ Make a profit
■ Won the 2008 Desjardins Sustainable
Development Award
■ Recognized for focus on quality, growth,
strong financial position while protecting
the environment and maintaining a safe
workplace
■ Named Nunavut Mining Company of
the Year at the 2009 Nunavut Mining
Symposium
26
27. Sustainable Development
Initiatives – Community, Environment and Health and Safety
■ LaRonde mine won its fourth consecutive
provincial mine rescue championship
■ In 2008, the combined lost-time injury frequency
rate for AEM and all contractors was 3.7, better
than objective of 3.8
■ Manitou-Goldex Rehabilitation Project
■ established program with the Quebec
government to rehabilitate an orphaned
acid-generating tailings site using
neutralizing tailings from Goldex
■ AEM is the first foreign mining company to have
received ESR certification as a socially
responsible company from the Centro Mexicano
para la Filantropia
27
32. A solid financial position, low-cost structure, well-funded
growth projects in regions of low political risk, and a
focused, consistent strategy put Agnico-Eagle in a strong
position to continue creating exceptional per share value.
Sean Boyd
Vice Chairman and Chief Executive Officer
Ebe Scherkus
President and Chief Operating Officer
David Garofalo
Senior Vice President, Finance and Chief Financial Officer
Trading Symbol: AEM on TSX & NYSE
Executive and Registered Office:
145 King Street East, Suite 400
Toronto, Ontario, Canada, M5C 2Y7
Tel: 416-947-1212
Toll-Free: 888-822-6714
Fax: 416-367-4681
www.agnico-eagle.com
Investor Relations:
416-947-1212
info@agnico-eagle.com
Member of the World Gold Council www.gold.com
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